Author Question: Suppose the price elasticity of demand for your economics textbook is -1 . If the publisher raises ... (Read 83 times)

Awilson837 · **on:** Jul 1, 2018

Suppose the price elasticity of demand for your economics textbook is -1 . If the publisher raises the price by 5 percent,
a. revenues will rise 5 percent
b. quantity demanded will rise 5 percent
c. total revenues will not change
d. revenues will fall
e. revenues will fall 5 percent

Question 2

If demand is unit elastic, a price reduction will
a. increase revenues
b. reduce revenues
c. reduce quantity demanded
d. have no effect on revenues
e. increase profits